Space. Inventory storage space was identified as a c<strong>on</strong>cern by a majority <strong>of</strong> instituti<strong>on</strong>s.Space needs vary based <strong>on</strong> <strong>the</strong> number <strong>of</strong> students, <strong>the</strong> number <strong>of</strong> textbooks allowed per course,<strong>the</strong> number <strong>of</strong> courses, and <strong>the</strong> length <strong>of</strong> time textbooks are kept in inventory. Nearly allinstituti<strong>on</strong>s that resp<strong>on</strong>ded to <strong>the</strong> <strong>IBHE</strong> survey indicated that new c<strong>on</strong>structi<strong>on</strong> or new leasedfacilities would be needed to accommodate rental programs as present space used for retailoperati<strong>on</strong>s is insufficient for a rental operati<strong>on</strong>. One public university expressed a c<strong>on</strong>cern thatspace did not exist <strong>on</strong> campus to add new facilities. Ano<strong>the</strong>r university estimated that <strong>the</strong> cost <strong>of</strong>an adequate storage facility would be at least $1.5 milli<strong>on</strong> due to <strong>the</strong> size <strong>of</strong> its student populati<strong>on</strong>and number <strong>of</strong> course <strong>of</strong>ferings.Storage may be a greater obstacle for community colleges that operate extensi<strong>on</strong> centersor <strong>of</strong>f-campus sites at multiple locati<strong>on</strong>s throughout <strong>the</strong>ir districts. Students taking courses at <strong>the</strong>various regi<strong>on</strong>al centers would ei<strong>the</strong>r have to travel to <strong>the</strong> main campus at <strong>the</strong> beginning and end<strong>of</strong> each semester to pick up and return books or <strong>the</strong> instituti<strong>on</strong> would have to transport books to<strong>the</strong> various sites where little or no extra space may exist. In additi<strong>on</strong>, logistics would have to beworked out to provide rented textbooks to <strong>on</strong>line students.Not all resp<strong>on</strong>ding community colleges reported a need for additi<strong>on</strong>al space, but <strong>the</strong>estimated costs <strong>of</strong> new c<strong>on</strong>structi<strong>on</strong>, remodeling, or leased storage space for those colleges thatdid report a need ranged from $50,000 to $200,000. The estimated average initial cost <strong>of</strong> space,including those colleges that estimated no additi<strong>on</strong>al cost for space, was $37,000 per college. Thecost did not include items such as fixtures.Public university survey resp<strong>on</strong>ses reported costs <strong>of</strong> new c<strong>on</strong>structi<strong>on</strong>, remodeling, orleased storage space ranging from $74,710 to $1.5 milli<strong>on</strong>. The cost did not include such items asfixtures. The estimated average initial cost <strong>of</strong> space, including those who estimated no additi<strong>on</strong>alcost for space, was $597,776.Loss <strong>of</strong> Revenue. According to <strong>the</strong> Nati<strong>on</strong>al Associati<strong>on</strong> <strong>of</strong> College Stores, “collegestores returned a median net income <strong>of</strong> 7.7 [percent] <strong>of</strong> net sales to <strong>the</strong>ir instituti<strong>on</strong>s” (NACSresp<strong>on</strong>se to <strong>IBHE</strong> letter 2006). In additi<strong>on</strong>, <strong>the</strong> college stores c<strong>on</strong>tributed 5.1 percent <strong>of</strong> net salesto support various campus activities, such as advertising dollars to school media, alumniactivities, d<strong>on</strong>ati<strong>on</strong>s <strong>of</strong> merchandise, n<strong>on</strong>-store administrative salaries, rent paid to <strong>the</strong> instituti<strong>on</strong>,scholarship funds, and store revenue paid to instituti<strong>on</strong>al account (NACS resp<strong>on</strong>se to <strong>IBHE</strong> letter2006).Resp<strong>on</strong>dents to <strong>the</strong> <strong>IBHE</strong> survey reported that <strong>the</strong>ir bookstores serve as sources <strong>of</strong>revenue for <strong>the</strong>ir instituti<strong>on</strong>s with funds typically being spent <strong>on</strong> student activities or studentuni<strong>on</strong> operating expenses. To <strong>the</strong> extent that <strong>the</strong> activities funded by bookstore revenues areindispensable, any loss <strong>of</strong> revenue would have to be recovered through o<strong>the</strong>r revenue-generatingmethods. In <strong>the</strong> cases <strong>of</strong> instituti<strong>on</strong>s that have c<strong>on</strong>tracted with independent companies to operate<strong>the</strong>ir <strong>on</strong>-campus bookstores, <strong>the</strong> instituti<strong>on</strong>s may have to pay additi<strong>on</strong>al fees to sever suchc<strong>on</strong>tracts and would subsequently lose <strong>the</strong> commissi<strong>on</strong>s provided by <strong>the</strong>se companies.O<strong>the</strong>r C<strong>on</strong>siderati<strong>on</strong>s. Although a textbook rental program generally lightens <strong>the</strong>financial burden <strong>on</strong> students and parents, in some cases a textbook rental program may coststudents more than a traditi<strong>on</strong>al purchase system. Under some rental programs, students pay amandatory rental fee regardless <strong>of</strong> whe<strong>the</strong>r <strong>the</strong>ir courses use textbooks. In some rare instances,students may pay more in rental fees if <strong>the</strong> cost <strong>of</strong> <strong>the</strong>ir textbooks is less than <strong>the</strong> rental fee. In <strong>the</strong>rental programs currently in place in Illinois, students typically pay a per credit hour fee.-34-
Under a textbook rental program, each public university would need to develop policiesfor graduate students. Eastern Illinois University is <strong>the</strong> <strong>on</strong>ly public instituti<strong>on</strong> in Illinois to <strong>of</strong>fer atextbook rental program to graduate students. Graduate level textbooks are <strong>of</strong>ten more expensivethan undergraduate texts and <strong>the</strong>refore may create a larger financial burden. Upper-divisi<strong>on</strong> andgraduate level courses may be <strong>of</strong>fered less frequently than lower-divisi<strong>on</strong> undergraduate courses,which may place an additi<strong>on</strong>al burden <strong>on</strong> storage space. In order for <strong>the</strong> instituti<strong>on</strong> to recover <strong>the</strong>initial cost <strong>of</strong> <strong>the</strong>se textbooks, <strong>the</strong> textbooks may have to be used over a l<strong>on</strong>ger period <strong>of</strong> timethan <strong>the</strong> traditi<strong>on</strong>al three-year adopti<strong>on</strong> period.Current Student <strong>Textbook</strong> Costs and Estimated <strong>Rental</strong> FeesResp<strong>on</strong>dents to <strong>the</strong> <strong>IBHE</strong> survey were asked to provide informati<strong>on</strong> <strong>on</strong> <strong>the</strong>:• estimated textbook adopti<strong>on</strong> cycle required to make a rental program cost effective;• estimated amount undergraduate students currently spend <strong>on</strong> textbooks; and• estimated rental fee per student required to make a rental program cost effective.Not all instituti<strong>on</strong>s provided complete informati<strong>on</strong>. The resp<strong>on</strong>ses are summarized in followingcharts:Public Universities – Adopti<strong>on</strong> Cycle and CostAdopti<strong>on</strong> Annual AnnualCycle Traditi<strong>on</strong>al Cost * <strong>Rental</strong> FeeEstimate *CSU 3 years $800 - $1000 (New <strong>Textbook</strong>s) -$520 - $650 (Used <strong>Textbook</strong>s)GSU 3 years $600 - $750 -ISU 3 years $590 $432NEIU 2 - 4 years $800 - $1200 $300NIU 2 - 3 years $478 - $571 ** $200 - $500SIUC 3 years $1,000 -UIC 3 - 4 years $700 - $900 -UIUC 2 - 3 years $1,000 -UIS - $800 - $900 $300WIU 4 years $800 - $1000 $360 - $450* Based <strong>on</strong> 30 semester hours.** This reflects <strong>the</strong> net cost (initial purchase price minus buyback refund).Source: Instituti<strong>on</strong>al Resp<strong>on</strong>ses to <strong>IBHE</strong> Survey 2006-35-
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